SMLLC -- using attorney or service to form, does it matter?

Question

I've decided to form a single member LLC (I'm aware of the negatives in doing that). Since, as I understand, the operating agreement isn't that complicated for a SMLLC, does it make much difference if I use a (reputable) service to save some money instead of an attorney?

(The reason I ask is because my friend is a lawyer and he told me that attorneys just use those services anyway to create LLCs)

Scott M. · Answer

To answer your question directly - no - it should not make a difference.

Sarah Lawlor · Answer

The Secretary of State websites do not provide operating agreements - all you can get from the state websites are the articles of organization to officially file the LLC and bring it into existence. The operating agreement is a different document kept with the company's internal records (is not provided by the state and is never filed with the state).

As for using an attorney vs a doc filing service, since single-member LLCs do not need to address issues pertaining to multiple owners, most people are just fine using the less expensive doc services instead of a lawyer (and, as you noted, often lawyers indeed just use the services' documents and then jack up the price to you).

Note that doc filing services' operating agreements are generic, so you might want to use the service's operating agreement as a template, then, before signing it, run it by a lawyer (chepaer than having them draft it "from scratch") in case you need to alter any provisions specific to your situation and the laws of your state.

In which state are you forming your LLC? I can provide the laws pertaining to operating agreements in your state for you.

Good luck Bienes.

Josh Green · Answer

just do it yourself on the secretary of states website for your state.